Hotel CEO wants to ban AI booking agents to protect upsell revenue

Tyler Morse, chairman and CEO of MCR Hotels, expressed his desire to ban AI personal assistants from booking hotel rooms, according to Skift. His main concern is that AI booking agents make more rational decisions and are less likely to be persuaded into impulse purchases that benefit hotels financially.

Morse explained at the Skift Commerce Summit that travel merchandising relies heavily on triggering impulse buys through strategic offers on websites and apps. AI agents, unlike human guests, do not respond to these tactics, potentially reducing hotel revenue from upsells.

This stance contrasts with companies like United Airlines, which have banned AI bots citing data privacy and regulatory risks. Morse's objection is purely commercial, focusing on the impact of AI on hotel sales rather than privacy or regulation.

The rise of AI booking agents raises questions about the future role of online travel agencies and whether hotels can technically block AI bots from making reservations, as discussed at the summit.

Morse concluded that many in the industry might follow suit in banning AI agents because it aligns with their financial interests.

What we're watching: How hotels and travel companies will adapt their sales strategies in response to AI booking technologies.